# Hochschild Mining (HOC.LSE)

Canonical: https://gigainvestors.com/s/HOC.LSE

Analysis as of: 2026-10-16T07:38:46.806Z. Financial observations: FY2003–FY2025.

Listing currency: GBX. Reporting currency: USD.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 512.00 per share; close as of 2026-10-15.

Estimated value: low GBX 267.37 per share, central GBX 366.39 per share, high GBX 424.05 per share. Buy at or below the central value GBX 366.39 per share. Valuation as of 2026-10-16T07:38:46.806Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 4 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 4

- Years with a net loss: 1

- Operating margin variation: 0.58×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.21×

- FY2017: 0.13×

- FY2018: 0.11×

- FY2019: 0.15×

- FY2020: 0.14×

- FY2021: 0.21×

- FY2022: 0.08×

- FY2023: -0.01×

- FY2024: 0.24×

- FY2025: 0.34×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- ROIC, median of available years: 9.7%

- ROIC, second-lowest year: 4.4%

- Typical minus recent gross margin: -6.0 pp

- Typical gross margin (annual median): 30.1%

- Recent gross margin (lower of latest and 3-year median): 36.1%

- Years with nonpositive capital: 0

- Capital spending / revenue: 18.8%

- ROIC including acquisitions, ten-year median: 1.0%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 10.7%

- FY2017: 9.2%

- FY2018: 6.5%

- FY2019: 10.3%

- FY2020: 7.8%

- FY2021: 17.8%

- FY2022: 4.4%

- FY2023: -0.7%

- FY2024: 17.8%

- FY2025: 37.9%

### economics: fail

- owner earnings cash conversion below threshold

- Owner earnings / net income, 5-yr: 0.04×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $14M

- Net income, five-year total: $328M

- Return on incremental invested capital: 26.0%

- Working capital / revenue, annual change: 0.1 pp

- Working capital / revenue, change between three-year averages: 0.2 pp

- Working capital / revenue, final three-year average: 5.2%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.99×

- FY2022: -64.60×

- FY2023: 3.11×

- FY2024: 0.99×

- FY2025: 0.99×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 9.2% vs 17.8%

- Per-share earnings: 0.07 to 0.19 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.4%

- Ordinary dilution, 5-year annual growth: -4.0%

- Market cap gain: $2.1B

- Cumulative retained earnings: $660M

- Diluted shares, 10-year annual growth: 0.4%

- Diluted shares, 5-year annual growth: -4.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 12.4%

- Per-share value change: $0.11

- Per-share value, starting three-year median: $0.07

- Per-share value, ending three-year median: $0.19

- Buybacks concentrated in cheaper years (correlation): 0.50

- Average buyback yield: 0.0%

- Buyback history: 3 years

- Debt-funded buybacks: No

- Acquisition spending: $48M

- Cumulative net income, 10 years: $485M

- ROIC, first three-year median: 9.2%

- ROIC, last three-year median: 17.8%

Chart: Earnings per share; fiscal year observations.

- FY2016: $0.08

- FY2017: $0.07

- FY2018: $0.02

- FY2019: $0.07

- FY2020: $0.02

- FY2021: $0.14

- FY2022: $0.00

- FY2023: -$0.11

- FY2024: $0.19

- FY2025: $0.40

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -10.5%

- Receivables to sales index (DSRI): 2.23×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.0%

- Earnings backed by cash: Yes

- Operating cash / earnings: 2.10×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.09×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -18.6%

- FY2017: -12.8%

- FY2018: -13.5%

- FY2019: -17.9%

- FY2020: -13.2%

- FY2021: -14.3%

- FY2022: -7.1%

- FY2023: -16.5%

- FY2024: -13.6%

- FY2025: -10.5%

## Holders

## Price story

Down 37% since Feb 2026 · "Hochschild Mining Cuts Guidance, Shares Tumble" (finance.yahoo.com, Aug 2025) · sales +30.6%

Story as of 2026-10-16T10:00:10.219Z; price observation 2026-10-15.

Price needs cash profits to grow 11.1% a year for ten years

- 2025-08-27: Hochschild Mining Cuts Guidance, Shares Tumble ([finance.yahoo.com](https://finance.yahoo.com/m/35f9884c-75a2-38d6-8704-9e46bae13bea/hochschild-mining-cuts.html))

- 2026-07-22: Hochschild Mining Stays on Track After Solid Q2, but Costs Run Above Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/commodities/articles/hochschild-mining-stays-track-solid-150649227.html))

### Sales · FY2024–2025

sales +30.6%; source https://filings.xbrl.org/549300JK10TVQ3CCJQ89/2025-12-31/ESEF/GB/0/549300JK10TVQ3CCJQ89-2025-12-31/reports/549300JK10TVQ3CCJQ89-2025-12-31-T01.xhtml; observed 2026-04-15.

- FY2016: $688M 

- FY2017: $723M 

- FY2018: $704M 

- FY2019: $756M 

- FY2020: $622M 

- FY2021: $811M 

- FY2022: $736M 

- FY2023: $694M 

- FY2024: $948M 

- FY2025: $1.2B 

### Gross margin · FY2025

gross margin 41.2%; source https://filings.xbrl.org/549300JK10TVQ3CCJQ89/2025-12-31/ESEF/GB/0/549300JK10TVQ3CCJQ89-2025-12-31/reports/549300JK10TVQ3CCJQ89-2025-12-31-T01.xhtml; observed 2026-04-15.

- FY2016: 28.9% 

- FY2017: 23.8% 

- FY2018: 24.3% 

- FY2019: 32.0% 

- FY2020: 31.4% 

- FY2021: 36.9% 

- FY2022: 28.3% 

- FY2023: 26.7% 

- FY2024: 36.1% 

- FY2025: 41.2% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in other precious metals & mining; annual sales are USD 1.2 billion.

- Source: https://filings.xbrl.org/549300JK10TVQ3CCJQ89/2025-12-31/ESEF/GB/0/549300JK10TVQ3CCJQ89-2025-12-31/reports/549300JK10TVQ3CCJQ89-2025-12-31-T01.xhtml (filed 2026-04-15); FY2025: revenue 1238110143; grossProfit 510617774; margin = grossProfit / revenue.

### Why customers stay

Margins ranged from 26.7% to 41.2% during 2023–25; it earns 9.7% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2023: grossProfit / revenue = 26.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2024: grossProfit / revenue = 36.1%.

- Source: https://filings.xbrl.org/549300JK10TVQ3CCJQ89/2025-12-31/ESEF/GB/0/549300JK10TVQ3CCJQ89-2025-12-31/reports/549300JK10TVQ3CCJQ89-2025-12-31-T01.xhtml (filed 2026-04-15); FY2025: grossProfit / revenue = 41.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); 10-year return on capital observations [[2016,0.10730818348970086],[2017,0.09184712326121185],[2018,0.0653849485095123],[2019,0.10276819119561602],[2020,0.07822281997899663],[2021,0.17798566016213793],[2022,0.04400948444919079],[2023,-0.006965313868478975],[2024,0.1783421228409039],[2025,0.3793596429098772]]; median 0.09730765722841393. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 19% of cash earnings on expansion; earns 26% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2016: growth capex 128189000; upkeep 1798000; owner earnings 45550000. Growth capex / owner earnings = 2.8142480790340287.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2020: growth capex 0; upkeep 107333000; owner earnings 25740600. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2021: growth capex 953000; upkeep 151410000; owner earnings 76051800. Growth capex / owner earnings = 0.012530932864179415.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); FY2024: growth capex 128448000; upkeep 160228000; owner earnings 95858326.86001635. Growth capex / owner earnings = 1.3399774876894621.

- Source: https://filings.xbrl.org/549300JK10TVQ3CCJQ89/2025-12-31/ESEF/GB/0/549300JK10TVQ3CCJQ89-2025-12-31/reports/549300JK10TVQ3CCJQ89-2025-12-31-T01.xhtml (filed 2026-04-15); FY2025: growth capex 38728847; upkeep 174850023; owner earnings 204338523. Growth capex / owner earnings = 0.1895327735142727.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); Incremental return on capital 0.2596878341542316, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); Dividend observations: [[2016,6998000],[2017,13996000],[2018,19999000],[2019,20213000],[2020,20556000],[2021,22022000],[2022,22017000],[2023,0],[2024,0],[2025,15513794]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 38.4% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); HOC.LSE SharesStats.PercentInsiders = 38.385000000000005 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 11.1% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-04-15); Ten-year compound average after fade. Initial solved rate 0.1470386618573839. Price 512; FX 75.34943299551671; discount 0.1; same standard ten-year fade to terminal 0.03. FY2015 owner earnings/share -0.9232704534736272 → FY2025 0.3970969060264565. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 240.30 per share

- 2016-11: GBX 196.84 per share

- 2016-12: GBX 190.71 per share

- 2017-01: GBX 222.27 per share

- 2017-02: GBX 240.03 per share

- 2017-03: GBX 250.58 per share

- 2017-04: GBX 229.21 per share

- 2017-05: GBX 258.25 per share

- 2017-06: GBX 247.25 per share

- 2017-07: GBX 285.30 per share

- 2017-08: GBX 255.99 per share

- 2017-09: GBX 206.94 per share

- 2017-10: GBX 198.74 per share

- 2017-11: GBX 206.58 per share

- 2017-12: GBX 238.05 per share

- 2018-01: GBX 206.49 per share

- 2018-02: GBX 184.40 per share

- 2018-03: GBX 179.57 per share

- 2018-04: GBX 189.27 per share

- 2018-05: GBX 195.40 per share

- 2018-06: GBX 171.77 per share

- 2018-07: GBX 157.35 per share

- 2018-08: GBX 155.54 per share

- 2018-09: GBX 147.65 per share

- 2018-10: GBX 142.11 per share

- 2018-11: GBX 145.85 per share

- 2018-12: GBX 140.71 per share

- 2019-01: GBX 170.29 per share

- 2019-02: GBX 178.90 per share

- 2019-03: GBX 186.29 per share

- 2019-04: GBX 167.81 per share

- 2019-05: GBX 139.76 per share

- 2019-06: GBX 172.59 per share

- 2019-07: GBX 187.55 per share

- 2019-08: GBX 197.65 per share

- 2019-09: GBX 184.85 per share

- 2019-10: GBX 180.52 per share

- 2019-11: GBX 146.98 per share

- 2019-12: GBX 165.01 per share

- 2020-01: GBX 151.76 per share

- 2020-02: GBX 144.00 per share

- 2020-03: GBX 95.94 per share

- 2020-04: GBX 125.61 per share

- 2020-05: GBX 180.52 per share

- 2020-06: GBX 175.11 per share

- 2020-07: GBX 242.20 per share

- 2020-08: GBX 216.95 per share

- 2020-09: GBX 197.29 per share

- 2020-10: GBX 198.37 per share

- 2020-11: GBX 191.70 per share

- 2020-12: GBX 187.37 per share

- 2021-01: GBX 207.39 per share

- 2021-02: GBX 193.87 per share

- 2021-03: GBX 176.46 per share

- 2021-04: GBX 167.54 per share

- 2021-05: GBX 176.73 per share

- 2021-06: GBX 138.32 per share

- 2021-07: GBX 139.04 per share

- 2021-08: GBX 136.16 per share

- 2021-09: GBX 119.93 per share

- 2021-10: GBX 128.58 per share

- 2021-11: GBX 118.84 per share

- 2021-12: GBX 130.10 per share

- 2022-01: GBX 103.50 per share

- 2022-02: GBX 116.10 per share

- 2022-03: GBX 128.70 per share

- 2022-04: GBX 118.00 per share

- 2022-05: GBX 110.10 per share

- 2022-06: GBX 96.50 per share

- 2022-07: GBX 81.00 per share

- 2022-08: GBX 65.00 per share

- 2022-09: GBX 59.00 per share

- 2022-10: GBX 53.35 per share

- 2022-11: GBX 69.75 per share

- 2022-12: GBX 70.25 per share

- 2023-01: GBX 68.35 per share

- 2023-02: GBX 64.05 per share

- 2023-03: GBX 84.50 per share

- 2023-04: GBX 71.85 per share

- 2023-05: GBX 75.95 per share

- 2023-06: GBX 71.10 per share

- 2023-07: GBX 77.20 per share

- 2023-08: GBX 91.40 per share

- 2023-09: GBX 83.20 per share

- 2023-10: GBX 93.55 per share

- 2023-11: GBX 105.10 per share

- 2023-12: GBX 107.10 per share

- 2024-01: GBX 104.00 per share

- 2024-02: GBX 92.70 per share

- 2024-03: GBX 127.40 per share

- 2024-04: GBX 155.80 per share

- 2024-05: GBX 186.60 per share

- 2024-06: GBX 179.00 per share

- 2024-07: GBX 181.60 per share

- 2024-08: GBX 171.80 per share

- 2024-09: GBX 183.60 per share

- 2024-10: GBX 229.50 per share

- 2024-11: GBX 214.00 per share

- 2024-12: GBX 214.00 per share

- 2025-01: GBX 176.00 per share

- 2025-02: GBX 183.40 per share

- 2025-03: GBX 264.50 per share

- 2025-04: GBX 282.20 per share

- 2025-05: GBX 274.40 per share

- 2025-06: GBX 255.60 per share

- 2025-07: GBX 278.80 per share

- 2025-08: GBX 281.00 per share

- 2025-09: GBX 355.40 per share

- 2025-10: GBX 330.40 per share

- 2025-11: GBX 403.00 per share

- 2025-12: GBX 513.50 per share

- 2026-01: GBX 676.00 per share

- 2026-02: GBX 808.50 per share

- 2026-03: GBX 597.00 per share

- 2026-04: GBX 623.00 per share

- 2026-05: GBX 615.50 per share

- 2026-06: GBX 462.60 per share

- 2026-07: GBX 431.40 per share

- 2026-08: GBX 667.50 per share

- 2026-09: GBX 530.50 per share

- 2026-10: GBX 512.00 per share

## Annual estimated value (GBX per share)

- FY2024: low GBX 85.31 per share, central GBX 113.20 per share, high GBX 130.96 per share

- FY2025: low GBX 266.59 per share, central GBX 365.59 per share, high GBX 423.23 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:44:26.561Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original ESEF filing](https://filings.xbrl.org/549300JK10TVQ3CCJQ89/2025-12-31/ESEF/GB/0/549300JK10TVQ3CCJQ89-2025-12-31/reports/549300JK10TVQ3CCJQ89-2025-12-31-T01.xhtml); period 2025-12-31, filed 2026-04-15.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.